Characteristics of taxes: functions, methods and principles

The tax system is a set of taxes and fees levied on citizens and organizations according to the procedure laid down in law. The need to characterize the tax system follows from the fundamental tasks of the country. The historical features of the development of the state determine each stage of development of the fiscal tax system. The structure, organization, characteristics of the tax system of the state indicate the level of its development in the field of economy. In this article we will talk about the current fiscal taxation in our country. We give and describe a brief description of state taxes.

Tax Principles

The main dogmas of building a fiscal system in Russia are determined by the main law in tax legislation - the Code. In Russia, there is a tax system consisting of three levels:

• federal;
• regional;
• local.

The tax code, which is currently the main legislative document on fiscal fees, consists of two parts that describe:

• the main principles of the system of taxes and fees;
• relations between citizens, organizations and the state on specific types of payments.

Tax principles

The effectiveness of the fiscal system is ensured by strict observance of tax rules laid down in the law. The functioning of many existing tax systems is based on four basic principles:

• Justice.
• Certainty.
• Convenience.
• Saving.

The principles of the system of taxes and fees in our country are formulated in the first part of the Code. The third article of this part describes the main characteristics of taxes and fees:

• All payers must pay statutory taxes.
• Fiscal fees should not discriminate against or infringe on anyone's rights.
• It is not possible to set different rates of taxes and fees or fiscal benefits depending on the property or citizenship of individuals.
• Taxes must be justified.
• You can’t introduce taxes and fees that violate the economic space of the country.
• It is not allowed to levy taxes and fees that have the characteristics of the taxes of our country, but not provided for in fiscal legislation.
• When introducing taxes, all elements of fiscal taxation should be spelled out in the law.
• All disputed issues unaccounted for by law on taxes and fees accepted for execution are resolved in favor of the payer of the fee.

Tax items

The definition of the concept of "tax" and a general description of taxes are presented in the eighth article of the Tax Code. A tax is a mandatory fee paid by an organization or a citizen in the form of withdrawal to the treasury of their property rights, professional management or operational management of funds in order to ensure the activities of the country, municipalities.

In law, all elements of the tax must be fixed:

• subject;
• an object;
• base for tax;
• rate;
• period;
• privileges;
• accrual procedure;
• procedure and terms of payment.

The subject of fiscal tax is a person who is obliged to pay taxes to the state treasury. Sometimes the tax may be shifted by the collection subject to another person. This applies to indirect taxes. The subject of tax is understood to be an individual who formally must pay it. The carrier of the fiscal fee is the person who actually pays it. This distinction plays an important role in the characterization of taxes.

Fiscal legislation established that the following are recognized as entities:

• legal entities and citizens;
• individual business owners.

The object of fiscal taxation is an important characteristic of taxes and is a subject to taxation. The following objects are legalized by fiscal legislation:

• profit;
• cost of goods or services;
• total income of citizens;
• means of transport;
• property.

The base for tax is another cost, physical characteristic of taxes. It serves to measure the object of fiscal taxation and is the value with which the tax is calculated.

The tax rate is the value of fiscal accruals per unit of base for the calculation of tax.

Tax rates are interest and solid. Interest rates are tied directly to the calculation base. Firm rates are set in absolute terms per unit of tax base.

For the tax payment period, a year or other time period is taken, at the end of which the tax base is determined and the amount payable is calculated. Each fiscal fee is assigned its own period, it can be a year, a quarter or another time period.

The tax benefits are considered to be the benefits provided to certain categories of payers compared to other payers.

To date, fiscal legislation provides for the following preferential system:

• tax-free minimum;
• the ability to not pay taxes;
• decrease in rates;
• exemption from taxation of specific elements of the collection object.

In order for the object of taxation to be considered as such, the general characteristic of taxes must contain an indication that with the presence of this object the payer has obligations to pay them.

Using the elements in fiscal legislation, a procedure is established that provides for a procedure for calculating fees. The above elements are a general description of taxes.

The criteria for the operation of the tax system

Quality criteria, which are a common characteristic of the fiscal system:

• Balance of the budget of the country.
• Efficiency. The fiscal policy pursued should be conducive to the sustainable economic development of certain industries.
• Low inflation. The current fiscal policy should ensure the correct balance of all fees in order to achieve price stability and prevent inflation.
• The effectiveness of social policy.
• Timeliness and completeness of tax payments.

Development prospects

The main trends in the development of taxes and fees:

• Fiscal burden reduction.
• Elimination of contradictions in the legislation regulating fiscal relations.
• Gradual transfer of the fiscal burden from the company to mandatory rent for the use of natural resources.
• An increase in the weight of direct fees, a reduction in the share of indirect taxes.
• The development of fiscal federalism.
• Improvement and strict observance of the principles of building a system of taxes and fees in the country.
• Increased political responsibility.
• Flexible response of the taxation system to changes in the situation in the economy.
• Improving fiscal discipline and tax culture of payers.
• Alignment of taxation conditions by reducing and structuring fiscal benefits.
• Improving the system of control and responsibility for committing offenses in the field of fiscal legislation.

Types of taxes

In our country, fiscal fees are established depending on their classification to a particular budget level:

• Taxes at the federal level established by the Tax Code of the Russian Federation and binding on the entire territory of our country.
• Regional and local taxes and fees established by the Tax Code of the Russian Federation, the regional laws of the country's constituent entities, as well as the regulatory legal acts of representative bodies of local self-government. Taxes at the regional level are mandatory for citizens and organizations located on the territory of constituent entities of the Russian Federation, and taxes at the local level are mandatory for municipalities.

When tax is accepted at the regional or local level, the following are determined:

• rates of fiscal fees;
• order and periods of payment;
• reporting forms, procedure and terms for their submission.

The legislative bodies of the constituent entities of the country and local governments may also provide fiscal benefits and rules for their use by a citizen or organization.

Federal taxes and fees

We list the fiscal fees related to the federal budget:

• VAT. Indirect tax, which is a form of withdrawal to the country's treasury of a share of the value of the goods created at all stages of production, introduced into the budget as the goods are sold.
• Excise taxes. Another indirect tax levied at the time of production on tobacco, wine and other mass-produced goods within the state.
• Tax on financial result of organizations. The basic rate is 20% (3% is transferred to the federal budget, and 17% to the regional).
• Capital Gains Tax. The fee on income of individuals and legal entities levied on realized capital gains that is obtained from the sale of securities, precious metals and property.
• Tax on income of citizens.
• Contributions to social extrabudgetary funds of the country. Basically, this includes the UST.
• State duty. This is a fee levied on taxpayers when they apply to government bodies at a certain level.
• Customs duty and fees. These are obligatory payments paid to customs authorities in connection with the transport of goods across the state border. The payment of a customs duty is a prerequisite for goods crossing the border and is provided, if necessary, by coercive measures.
• Fiscal fee for the use of the bowels of the earth. This, for example, payment for land or the sea.
• Fiscal fee for the reproduction of the base of minerals and stocks of raw materials.
• Fiscal fee for additional cash result from oil production and so on.
• Tax on the right to use the objects of the natural, water world.
• Forest fiscal fee. Taxpayers are organizations and citizens who use the forest fund.
• Water fiscal collection. Organizations and citizens who carry out special water use in accordance with the laws of the country are considered taxpayers.
• Ecological fiscal fee. Payment of organizations for the negative impact on nature that they have in the conduct of their activities.
• Licensing fees at the state level. The maximum rate of collection is 10%.

Regional taxes and fees

We list the fiscal fees related to the budget of the regions:

• Asset tax. An object is recognized as movable and immovable property of the organization, recorded on the balance sheet in the form of fixed assets.
• Property tax. The fee will be calculated based on the average market value per square meter of real estate and taking into account the rate, which can vary from 0.1 to 2%.

• Fiscal fees on the road. This is a fee for damage to the tracks.
• Transport fiscal fee. Tax levied on vehicle owners.

• Fiscal sales tax. Indirect fee charged at time of purchase. As a rule, it is calculated as a fraction of the value of the goods sold.
• Licensing fees at the regional level. Payers are organizations and business owners who acquire licenses from authorized bodies under the legislation for the implementation of certain types of activities on the territory of a subject.

Local taxes

We list the fiscal fees that replenish local budgets:

• Land tax. This fiscal fee is paid by organizations and citizens who own plots of land on the basis of ownership, permanent use or lifetime possession.
• Property tax for citizens. Payers are owners of property recognized as an object of fiscal taxation.

• Advertising tax. Payers are organizations and citizens who advertise products. The object of collection is the cost of work and services for the distribution and production of advertising.
• Inheritance or gift tax. Payers of inheritance and donation fees are citizens who receive property from other persons.
• Local licensing fees. Payers are organizations and business owners who acquire licenses to carry out certain activities in the local territory.

Organization Taxes

We give a description of the taxes of organizations. In our country, organizations pay the following taxes:

• Fees at the federal level: VAT, excise taxes, tax on financial results, mineral extraction, state duty, water tax, fee for the use of natural world objects.
• Fees at the regional level: corporate asset tax, transport tax.
• Local level: fiscal tax on land.

Reasons for attributing taxes to different levels of budgets

A comparative description of taxes allows us to conclude that many fiscal fees, which, in fact, have one object of taxation, belong to different levels of government.

It should be noted that the Tax Code of the Russian Federation creates the possibility of disagreements between the interests of subjects and local authorities. In the case of the introduction of a tax at the regional level on real estate on the territory of the subject, the effect of local fees on the property of citizens and land tax, which are the main sources of revenue to the budgets of the local level.

Summary

The characteristic of the taxes of the Russian Federation allows us to conclude that they, as a complex phenomenon, include a set of certain elements. Each of which has an independent legal significance. The Tax Code of the Russian Federation introduced a rule: the tax is considered established when the relevant fiscal legislation defines the essential elements of taxation. This determines the legal characteristics of taxes. In some cases, tax incentives may also provide for appropriate exemptions.

A special fiscal regime is considered to be a special system for calculating and paying taxes and fees during a specific time period, applied in the manner established by the Tax Code and laws adopted in accordance with it.

The concept of each element of fiscal collection is universal, it is used in processes by all states. These elements have been used since the inception of the state.